What you are describing is a congenital nevus (mole). These have to watched for change, but the only treatment is plastic surgery, and that is no small matter in a small child. The decision to operate or not is one that needs to be made by experts in pediatric plastic surgery. I assume your granddaughter is seeing such specialists in Albuquerque. Other opinions can be obtained elsewhere, but no doubt anyone would be reluctant to operate at this point.
Without in any way minimizing your concerns, I would point out that kids often do a remarkable job of adapting to obvious deformities. Basically, the people and kids they see every day get used to the way they look, and people stop bringing it up. Her parents will, I'm sure, be vigilant to see that her psychosocial development proceeds properly, and will take action if it's appropriate.
Best.
Dr. Rockoff
Dr. Rockoff
http://www.hopeforkids.com/hairy_nevus_surgery.html